What are Exness's Leverage, Unlimited Leverage and Margin Requirement?

Would you like to know more about leverage and balance of trading contracts? In this FAQ, you can learn about the following topics:

What is leverage?

Leverage increases a trader’s purchasing power by allowing traders to trade in large volumes with a small amount of deposited funds. Leverage is expressed as the ratio of the trader’s own funds to the borrowed funds (e.g. 1:200, 1:2000 or 1: unlimited).

The maximum leverage that can be used to trade the majority of Forex currency pairs depends on the trading terminal program.

MT4

Unlimited leverage on Standard, Standard Plus, Standard Cent, Pro, Zero and Raw Spread accounts.

MT5

Leverage 1:2000 on Standard, Standard Plus, Standard Cent, Pro, Zero and Raw Spread accounts.

The amount of leverage is subject to fluctuation as it depends on the daily balance of the account and other factors outlined below. For more information on changing leverage, click here.

Find out more about Leverage on EXNESS Official Website

What is Unlimited leverage of Exness?

Unlimited leverage allows you to trade with a small margin, which allows you to open larger positions and try different strategies. The actual value of unlimited leverage is 1:2,100,000,000. With MT4*, you can use Standard, Standard Cent, Standard Plus, Pro, Raw Spread, and Zero accounts.

Unlimited leverage is more suitable for seasoned traders as it is risky and can result in huge capital losses. To qualify for unlimited leverage, you must first meet the following prerequisites:

• The one-day deposit balance of the trading account must be 1,000 USD or less.
• Traders must have a minimum of 10 positions (excluding limit orders) and 5 lots (or 500 centlots) of all real accounts in the privacy area.

You can choose unlimited leverage in the privacy area. However, the unlimited leverage option is only available if all required prerequisites have been met.

If you select Unlimited Leverage, the maximum available leverage will automatically change to 1:2000 the moment your account’s single-day deposit balance exceeds 1,000 USD.

There are also other factors that can affect the balance requirements for trading contracts, such as the announcement of important economic news and trading before weekends and holidays. To learn more, read the rules for leverage and contract balance (margin) requirements.

Please note that unlimited leverage does not apply to financial products belonging to the special, cryptocurrency, energy, stock, and index product groups. The level of trade contract balance required to trade this product is in accordance with the requirements of the product and is not affected by unlimited leverage. A list of products can be found here or in the details of the contract.

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Changes in the balance of the transaction contract

The majority of trading instruments have dynamic contract balance requirements that change with leverage changes. In other words, as the leverage increases, the transaction contract balance requirement decreases, and vice versa. The Trader Calculator allows you to check the balance of your trading contract directly.

Leverage will change automatically in the following cases:

• When the daily deposit balance of the account is changed;
• When important economic news is released;
• Before weekends and holidays;
• 30 minutes before closing on a day (for gold trading);
• 4 hours before closing and 20 minutes after opening when trading stocks of companies that have published financial reports.

More details can be found on the website’s Terms and Conditions for Balance Requirements and Leverage Regulations page.

The balance requirements for certain instruments are fixed regardless of the level of leverage in use. These financial products belong to the special, cryptocurrency, energy, stock and index product groups. The level of trade contract balance required to trade this product is in accordance with the requirements of the product and is not affected by unlimited leverage. A list of products can be found here or in the details of the contract.

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How to calculate the balance of the transaction contract

Whenever you want to trade, it is very important to ensure that you have enough funds (balance) to open a position in your account and keep it open. Learn more about this in another article.

So how do you calculate the balance of the trading contract?

Please note that different trading instruments have different methods of calculating the required trading contract balance. Therefore, for most of the trading products provided by Exness, the required balance of the trading contract is calculated according to the leverage that the customer is using. However, there are products with a fixed required balance of contracts regardless of the leverage used by the customer.

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How does news release affect Exness’s leverage?

If a trading instrument is subject to material news, the leverage on the currency pair associated with that instrument is limited to 1:200. Let’s take a closer look at this.

In the case of socioeconomically important news affecting a particular trading instrument, the balance of the trading contract for all opened orders containing the currency pair associated with that product will have a maximum leverage of 1:200 from 15 minutes before the announcement to 5 minutes after the announcement of the news. Applies.

This is implemented to reduce the risk of traders in case of unforeseen circumstances in the market during important economic events.

After this period (5 minutes after the announcement of the news), the balance of the trading contract will be recalculated based on the amount and leverage set in the account.

See EXNESS’s Economic Calendar

Example of Leverage Change

Suppose the following USD-related news has been released.

12:30 USD Source Personal Expenditure YoY High

This means that all new orders for currency pairs containing USD from 12:15 GMT+0 to 12:35 GMT+0 will be subject to maximum leverage of 1:200.

Please note that if multiple news events are announced in succession, the high trading contract balance requirement may be extended for a long period of time.

Suppose the news mentioned below is due to be released today.

12:30 USD Source PCE(YoY) High

12:30 USD Source Personal Expenditure YoY High

13:00 EUR German Consumer Price Index YoY High

From 12:15 to 12:35 GMT+0, and from 12:45 to 13:05 GMT+0, the contract balance requirement does not increase twice, but in one extended period, 12:15 to 13:05 GMT+. It will increase to 0 for 50 minutes.

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How do Exness’s clients get notified of the change?

An email will be sent to the Mailbox tab of your trading platform 45 minutes prior to the announcement of the news, specifying the calls and times affected by the news, through which you can receive notifications.

You can keep track of the news coming out by checking the economic calendar on EXNESS Official Website. The red flame symbol next to the news indicates high importance.

You can also filter news according to the currency you are trading with.

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Leverage impact at stop-out

A sudden stopout in Forex trading can be very frustrating. However, by testing different trading conditions through risk management techniques, you can be thoroughly prepared for a stopout. Let’s look at how leverage affects stopouts and how you can adjust them.

Stop-out automatically closes the position when the contractable balance ratio reaches a certain ratio (in the future), in most cases 0%. The trade balance warning is similar in that it does not automatically close the position, but warns that the position has entered a downtrend when the tradeable balance ratio approaches 60%.

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What is the tradeable balance ratio?

The remaining transaction contractable balance ratio is a percentage of both the transaction contract balance and the one-day deposit balance, and is calculated as follows.

One-day deposit balance/transaction contract residual amount * 100 = transaction contract remaining amount ratio

Therefore, if the one-day deposit balance is 1,000 USD and the transaction contract balance is 100 USD, the balance available for trading is 1,000%.

1000/100 x 100 = 1000%

When the percentage reaches 0%, Stop Out automatically closes positions starting with the position that represents the lowest return. As a result, the liquidation of the position will not be interrupted unless the contractable balance ratio recovers above the level at which the stop out is set.

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When does the stop out occur?

When the order is executed, the remaining contractable balance ratio is calculated as follows.

1000/40 x 100 = 2500% (2500% of the remaining amount available for trading).
As the position begins to decline, the one-day deposit balance decreases accordingly. Let’s say your one-day deposit balance is 500 USD.

500/40 x 100 = 1250% (1250% of the remaining amount available for trading contracts).
Although not yet enough for a stop-out, the remaining contractable balance ratio has been cut in half. That’s bad news. The position went completely down, and the one-day deposit balance fell to 1 USD.

1/40 x 100 = 2.5% (tradeable balance ratio 2.5%)
No stopouts have occurred yet, but the odds are very high. The position has turned red and the one-day deposit balance is now zero.

0/40 x 100 = 0% (0% of the remaining amount available for trading).
An immediate stop-out occurs and this position is automatically closed.

Learn More about Stop Out

Summary of Exness’s Leverage Condition

As leverage fluctuates, the balance of the starting transaction contract as well as the one-day deposit balance also fluctuates, which may affect stop-outs. Leverage is set to 1:200, 1:500, etc., which means that the buying power of the trader increases. 1:200 means that if there is a 1$ trading contract balance, this is multiplied by 200$. This is useful when trading large volumes with small trading contract balances, but it comes with higher potential risks as position volatility increases.

Leverage and stop-out are affected by the remaining contractable balance ratio.

The key here is volatility.

• As leverage increases, the trading contract balance decreases and is more affected by position changes.
• As leverage decreases, the balance of the trading contract increases and is less affected by position changes.

A high level of leverage increases the rate at which the ratio of the remaining available for trading contracts changes compared to a high level of leverage.

The amount of loss due to stop-outs for the above two positions is the same, but the probability of stop-outs will increase quickly because the higher level of leverage is more volatile.

These points are often overlooked, but they must be considered for comprehensive risk management.

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